! The Capitol Complex is closed to the public due to COVID-19. All meetings will be held virtually online. View procedures and guidelines (PDF) for remote public comment and virtual meeting instructions (PDF).

Link to Zipped WordPerfect Minutes 13K bytes

MINUTES OF THE SENATE BUSINESS & LABOR
STANDING COMMITTEE
THURSDAY, FEBRUARY 10, 2005, 4:OO P.M.
ROOM W015, WEST OFFICE BUILDING
STATE CAPITOL COMPLEX


Members Present:    Sen. Scott K. Jenkins, Chair
        Sen. Gene Davis
        Sen. Thomas V. Hatch
        Sen. Parley G. Hellewell
        Sen. John W. Hickman
        Sen. Sheldon L. Killpack         Sen. Ed Mayne
        Sen. Michael Waddoups

Members Excused:    Sen. L. Alma Mansell

Staff Present:    Mark Steinagel, Policy Analyst
        Karen Allred, Committee Secretary

Public Speakers Present:    Dale Zabriskie, Utah Manufactured Housing Association
        Tom Bingham, President, Utah Manufacturers Association
        Gordon Olsen, Coast Crane Company
        Rich Thorn, President, CEO, Associated General Contractors
        Pete Clark, Utah Manager, Ed Kraemer & Sons
        Craig Jackson, Director, Division of Occupational and         Professional Licensing
        Randon Wilson, Attorney
        Paul Allred, Deputy Commissioner, Department of Financial         Institutions
        Jim Werbeckes, Vice President, Government and Regulations,         Employees Insurance Corporation
        Gary Thorup, Attorney, Property & Casualty Company of America
        Brian Allen, Liberty Mutual Insurance
        Mike Sonntag, Lobbyist, American Insurance Association
        Douglas Richins, Director, DAS Purchasing
        Paul Rogers, Workers Compensation Fund
        Larry Lunt, Chairman, Alcohol Beverage Control Board
        Chris Purcell, State Farm Insurance
        Steve Sullivan, Attorney

A list of visitors and a copy of handouts are filed with the committee minutes.

Committee Chair Scott K. Jenkins called the meeting to order at 4:10 p.m.



     MOTION: Sen. Hellewell moved to adopt the minutes of February 8, 2005.
    The motion passed unanimously with Sen. Hatch, Sen. Hickman and Sen. Waddoups absent     for the vote.

         1.    S.B. 223 Oversight and Enforcement of Work Done on Mobile Homes (E. Mayne)

    Sen. Mayne proposed the following amendments:     

1.    Page 1, Lines 13 through 16 :    

             13          .    includes mobile homes
  and manufactured homes       within the definition of structures referred to in the Utah

             14      Construction Trades Licensing Act, thereby giving the Division of Occupational and
             15      Professional Licensing oversight of construction trades that construct, alter,
             16      remodel, or repair mobile
  or manufactured       homes.


2.    Page 3, Lines 66 through 72 :    

             66          (10) "Construction trade" means any trade or occupation involving:
             67          (a) (i) construction, alteration, remodeling, repairing, wrecking or demolition, addition
             68      to, or improvement of any building, highway, road, railroad, dam, bridge, structure, excavation
             69      or other project, development, or improvement to other than personal property; [or] and
             70          (ii)
{   for purposes of this Subsection (10)(a), a mobile home is considered a structure and   }

             71     
{   not an item of personal property;   }        constructing, remodeling, or repairing a manufactured home or mobile home as defined in Section 58-56-3;       or

             72          (b) installation or repair of a residential or commercial natural gas appliance or

    MOTION: Sen. Mayne moved to adopt the amendments.

    The motion passed with Sen. Hatch, Sen. Hickman, Sen. Waddoups and Sen. Davis absent     for the vote.

    Dale Zabriskie, Utah Manufactured Housing Association, spoke in support of the bill.




     MOTION: Sen. Hellewell moved to pass the bill out favorably as amended.

    The motion passed unanimously with Sen. Hatch, Sen. Hickman and Sen. Waddoups absent     for the vote.

2.    S.B. 29 Licensing of Crane Operators (G. Davis)

    
Sen. Davis explained the bill.

    Speaking in support of the bill were: Tom Bingham, Utah Manufacturers Association;     Gordon Olsen, Coast Crane Company; Rich Thorn, President and CEO, Associated General     Contractors; and Pete Clark, Utah Manager, Ed Kraemer & Sons.

    Craig Jackson, Director, Division of Occupational and Professional Licensing     answered questions from the committee.

     MOTION: Sen. Mayne moved to pass the bill out favorably.

    The motion passed unanimously with Sen. Hickman and Sen. Killpack absent for the vote.

3.    S.B. 215 Financial Institutions as Limited Liability Companies (L. Hillyard)

    
MOTION: Sen. Hellewell moved to adopt 1st Sub. 215.

    The motion passed unanimously with Sen. Hickman and Sen. Killpack absent for the vote.

    The following amendments were distributed:
    

1.    Page 1, Lines 20 through 21 :    

             20      Other Special Clauses:
             21          
{   None   }        This bill provides an immediate effective date.      


2.    Page 6, Lines 151 through 153 :    

             151          (7) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             152      commissioner shall make rules governing the form of a request for approval filed under this


             153      section.
    
  Section 2. Effective date.

If approved by two-thirds of all the members elected to each house, this bill takes effect upon approval by the governor, or the day following the constitutional time limit of Utah Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the date of veto override.  


    MOTION: Sen. Hatch moved to adopt the amendments.

    The motion passed unanimously with Sen. Hickman and Sen Killpack absent for the vote.                 
    Sen. Hillyard explained the bill assisted by Randon Wilson, Attorney.

    Paul Allred, Deputy Commissioner, Department of Financial Institutions spoke in support of     the bill.

     MOTION: Sen. Hatch moved to pass out 1st Sub. S.B. 215 out favorably as amended.

    The motion passed unanimously with Sen. Hickman and Sen. Davis absent for the vote.

4.    S.B. 180 Workers Compensation - Competitive Bid Requirements (M. Waddoups)

    
Sen. Waddoups proposed the following amendments:
    

1.    Page 1, Lines 12 through 19 :    

             12          This bill:
  .     addresses the makeup of the Workers' Compensation Fund's board of directors;      

             13          .    deletes the requirement that state entities pay the Workers' Compensation Fund for
             14      workers' compensation coverage;
             15          .    requires that state entities seek competitive bids for workers' compensation
             16      insurance every three years in accordance with the Utah Procurement Code;
  and      

             17          
{   .    requires the Department of Insurance to determine the criteria and process for

             18      insurance companies submitting competitive bids; and  
}

             19          .    makes technical changes.



.    Page 2, Lines 34 through 37 :    

             34          (3) One director
{   [   } : (a)      {   ]   } shall be the executive director of the Department of

             35      Administrative Services or the executive director's designee[; and]
{   .   }        ;      

             36          
{   [   } (b) acts as the representative of the state as a policyholder of the Workers'

             37      Compensation Fund.
{   ]   }        ; and

    (c) shall resign when required by Subsection (8).  


.    Page 2, Line 58 through Page 3, Line 60 :    

             58          (8)
  (a)       Any director who represents a policyholder that fails to maintain workers'

             59      compensation insurance through the Workers' Compensation Fund shall immediately resign
             60      from the board
  including the executive director of the Department of Administrative Services or the executive director's designee resigning on the day on which no department, commission, board, or other agency of the state is insured by the Workers' Compensation Fund pursuant to Section 34-2-203.

    (b) If no department, commission, board, or other agency of the state is insured by the Workers' Compensation Fund pursuant to Section 34A-2-203, the governor, with the consent of the Senate, shall appoint a member to replace the executive director of the Department of Administrative Services or the executive director's designee. The member appointed under this Subsection (8)(b) shall:
    (i) be an owner, officer, or employee of a policyholder that has been insured by the Workers' Compensation Fund for at least one year before the appointment of the director representing the policyholder; and
    (ii) shall have the experience outlined in Subsection (7)  
.


.    Page 3, Lines 73 through 75 :    

             73          (b) Notwithstanding the requirements of Subsection (11)(a), the governor shall, at the
             74      time of appointment or reappointment, adjust the length of terms to ensure that the terms of


             75      directors are staggered so that approximately half of the
  appointed members of the       board      {   is   }        are       appointed every two years        , provided that no more than two directors may be appointed in a single year       .


.    Page 5, Lines 124 through 134 :    

             124          [Each] (1)
{   (a)   } Beginning on the day on which any contract in effect on May 2, 2005,

             125      between the state and the Workers' Compensation Fund for workers' compensation coverage
             126      terminates, each department, commission, board, or other agency of the state shall [pay the
             127      insurance premium on its employees direct to the Workers' Compensation Fund] obtain
             128      workers' compensation insurance under this title by way of a competitive bid process.
             129          
{   (b)   }        (2)       The competitive bid process required by Subsection (1)      {   (a)   } shall:

             130          
{   (i)   }        (a)       occur once every three years; and

             131          
{   (ii)   }        (b) be conducted       in accordance with Title 63, Chapter 56, Utah Procurement Code.

             132          
{   (2) Notwithstanding Subsection (1)(b), the Insurance Department shall determine the

             133      criteria and process for an insurance carrier to bid for the opportunity to provide workers'
             134      compensation insurance to a department, commission, board, or other agency of the state.  
}

    
     MOTION: Sen. Waddoups moved to adopt the amendments.

    The motion passed unanimously with Sen. Hickman absent for the vote.

    Jim Werbeckes, Vice President, Government and Regulations, Employees Insurance     Corporation, spoke in support of the bill, but opposed to the amendment.

    Speaking in support of the bill were: Gary Thorup, Attorney, Property & Casualty     Company of America; Brian Allen, Liberty Mutual Insurance; Mike Sonntag, Lobbyist,     American Insurance Association; Douglas Richins, Director, DAS Purchasing.


    Paul Rogers, Workers Compensation Fund, spoke to the amendments.     
    MOTION : Sen. Killpack moved to pass the bill out favorably as amended.

    The motion passed unanimously with Sen. Hickman absent for the vote.

5.    S.B. 65 Alcoholic Beverage Control Amendments (P. Knudson)

    
Sen. Knudson explained the bill assisted by Larry Lunt, Chairman, Alcoholic
    Beverage Control Commission.

     MOTION: Sen. Davis moved to pass the bill out favorably.

    The motion passed unanimously with Sen. Hickman absent for the vote.

6.    S.B. 207 Motor Vehicle Insurance Coverage Amendments (D. Eastman)

    
Sen. Hatch presented the bill.

    Chris Purcell, State Farm Insurance, and Steve Sullivan, Attorney, spoke in support of the     bill.

    
MOTION: Sen. Waddoups moved to pass the bill out favorably.

    The motion passed unanimously with Sen. Hickman absent for the vote.

     MOTION: Sen. Davis moved to adjourn.

    The motion passed unanimously with Sen. Hickman absent for the vote.

    The meeting adjourned at 5:45 p.m.

    



    
    

         Sen. Scott K. Jenkins, Chair